PART 7 DISTRIBUTION OF CREDITORS

CHAPTER 1 Application of Part and general

Distribution to creditors generally
36. (1) This Part applies where the energy administrator makes, or proposes to make, a distribution to any class of creditors. Where the distribution is to a particular class of creditors, references in this Part to creditors shall, in so far as the context requires, be a reference to that class of creditors only.
(2) The energy administrator shall give notice to the creditors of his intention to declare and distribute a dividend in accordance with Rule 63.
(3) Where it is intended that the distribution is to be a sole or final dividend, the energy administrator shall, after the date specified in the notice referred to in paragraph (2)—
(a) defray any items payable in accordance with the provisions of paragraph 99 of Schedule B1 to the 1986 Act;
(b) defray any amounts (including any debts or liabilities and his own remuneration and expenses) which would, if the energy administrator were to cease to be the energy administrator of the protected energy company, be payable out of the property of which he had custody or control in accordance with the provisions of paragraph 99 of Schedule B1 to the 1986 Act; and
(c) declare and distribute that dividend without regard to the claim of any person in respect of a debt not already proved.
(4) The court may, on the application of any person, postpone the date specified in the notice.

Debts of insolvent company to rank equally
37. Debts other than preferential debts rank equally between themselves in the energy administration and, after the preferential debts, shall be paid in full unless the assets are insufficient for meeting them, in which case they abate in equal proportions between themselves.

Supplementary provisions as to dividend
38. (1) In the calculation and distribution of a dividend the energy administrator shall make provision for—
(a) any debts which appear to him to be due to persons who, by reason of the distance of their place of residence, may not have had sufficient time to tender and establish their proofs;
(b) any debts which are the subject of claims which have not yet been determined; and
(c) disputed proofs and claims.
(2) A creditor who has not proved his debt before the declaration of any dividend is not entitled to disturb, by reason that he has not participated in it, the distribution of that dividend or any other dividend declared before his debt was proved, but—
(a) when he has proved that debt he is entitled to be paid, out of any money for the time being available for the payment of any further dividend, any dividend or dividends which he has failed to receive; and
(b) any dividends payable under sub-paragraph (a) shall be paid before the money is applied to the payment of any such further dividend.
(3) No action lies against the energy administrator for a dividend; but if he refuses to pay a dividend the court may, if it thinks fit, order him to pay it and also to pay, out of his own money—
(a) interest on the dividend, at the rate for the time being specified in section 17 of the Judgments Act 1838, from the time when it was withheld; and
1838 c. 110, as amended by the Civil Procedure Acts Repeal Act 1879, section 2, Schedule 1, Part 1, the Statute Law Revision (No. 2) Act 1888, S.I. 1993/564, article 2, 1998/2940, article 3(a), (b) and (c).
(b) the costs of the proceedings in which the order to pay is made.

Division of unsold assets
39. The energy administrator may, with the permission of the creditors, divide in its existing form amongst the protected energy company’s creditors, according to its estimated value, any property which from its peculiar nature or other special circumstances cannot be readily or advantageously sold.